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FedEx Ground warehouse workers are unionizing right now.
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<blockquote data-quote="Ricochet1a" data-source="post: 867036" data-attributes="member: 22880"><p>You are absolutely on the money - your wisdom shows....</p><p></p><p>When I was still in Express, I'd ask people who they were "competing" with, the guy in Brown or the guy in Purple with a Green logo on his shirt (FedEx Ground). Without exception they got it wrong (they stated that they were in competition with the guy in Brown).</p><p></p><p>UPS and Express wage employees are in competition with the business model that exists in FedEx Ground. That business model has wage "employees" making between $25,000 and $30,000 a year in total competition. No other existing business model can compete against that and still compensate their employees with a middle class income. </p><p></p><p>I think a large part of the Teamsters recent lack of demonstrated cajones is due to the Democrats conduct in the 2009-10 Congress. They had a clear shot to reset the stage and make legislation that would benefit labor for years to come - they blew it. Everyone now seems to be of the mentality to "play it safe" and not take any losses. Going from controlling both houses of Congress to a bunker mentality in such a short time is amazing. </p><p></p><p></p><p>The other cold hard fact is that if FedEx Corporation can get package volume moved by employees making a total of $30,000 a year in compensation, then the typical Express full timer (for as long as they remain full time) making about $50,000 in compensation has it "relatively good". They know they can't get into UPS (NO ONE is going to spend years working as a handler after driving for a living), so their options are limited to hanging on till the bitter end, or taking personal initiative and retraining for another career. </p><p></p><p>When a situation like this exists, equilibrium must be restored. Businesses cannot compete when there is such disparity between compensation models. There will either be a rush towards the lowest common denominator, or there will be unionization within the lowest compensated business models.</p><p></p><p>FedEx has gone to extraordinary lengths to keep unions out. They spend tens of millions a year in lobbying and legal expenses to maintain their business models. To date, they have won against all - even a Democrat controlled Congress and White House. </p><p></p><p>Between the RLA for Express, the IC/ISP business model for Ground and the lack of cajones within the IBT, the outcome is inevitable - a gradual race to the bottom, with equilibrium established somewhere around $35-40,000/yr compensation for full time wage employees. </p><p></p><p>I honestly don't see how UPS can continue to compete against this for another 5 years, forget about another 14 years (<em>without radically altering its compensation for its drivers</em>). </p><p></p><p>So, the situation boils down to the fact that if the current UPS drivers want to protect <u>their</u> compensation package, they have a vested interest in making sure the compensation packages of Express and Ground wage employees are somehow increased. In the end, the playing field MUST be leveled, free market economics dictates that a disparity such as currently exists cannot be supported for long.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 867036, member: 22880"] You are absolutely on the money - your wisdom shows.... When I was still in Express, I'd ask people who they were "competing" with, the guy in Brown or the guy in Purple with a Green logo on his shirt (FedEx Ground). Without exception they got it wrong (they stated that they were in competition with the guy in Brown). UPS and Express wage employees are in competition with the business model that exists in FedEx Ground. That business model has wage "employees" making between $25,000 and $30,000 a year in total competition. No other existing business model can compete against that and still compensate their employees with a middle class income. I think a large part of the Teamsters recent lack of demonstrated cajones is due to the Democrats conduct in the 2009-10 Congress. They had a clear shot to reset the stage and make legislation that would benefit labor for years to come - they blew it. Everyone now seems to be of the mentality to "play it safe" and not take any losses. Going from controlling both houses of Congress to a bunker mentality in such a short time is amazing. The other cold hard fact is that if FedEx Corporation can get package volume moved by employees making a total of $30,000 a year in compensation, then the typical Express full timer (for as long as they remain full time) making about $50,000 in compensation has it "relatively good". They know they can't get into UPS (NO ONE is going to spend years working as a handler after driving for a living), so their options are limited to hanging on till the bitter end, or taking personal initiative and retraining for another career. When a situation like this exists, equilibrium must be restored. Businesses cannot compete when there is such disparity between compensation models. There will either be a rush towards the lowest common denominator, or there will be unionization within the lowest compensated business models. FedEx has gone to extraordinary lengths to keep unions out. They spend tens of millions a year in lobbying and legal expenses to maintain their business models. To date, they have won against all - even a Democrat controlled Congress and White House. Between the RLA for Express, the IC/ISP business model for Ground and the lack of cajones within the IBT, the outcome is inevitable - a gradual race to the bottom, with equilibrium established somewhere around $35-40,000/yr compensation for full time wage employees. I honestly don't see how UPS can continue to compete against this for another 5 years, forget about another 14 years ([I]without radically altering its compensation for its drivers[/I]). So, the situation boils down to the fact that if the current UPS drivers want to protect [U]their[/U] compensation package, they have a vested interest in making sure the compensation packages of Express and Ground wage employees are somehow increased. In the end, the playing field MUST be leveled, free market economics dictates that a disparity such as currently exists cannot be supported for long. [/QUOTE]
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